Judith Company issues a $220,000, 3-year bond paying 6% interest rate,

with interest payable semiannually. The market rate for similar such securities

is 8%. How much can Judith Company expect to receive from the sale of

these bonds? (Calculate below)

a. How much is the semi annual interest payment to the bondholders?

b. Calculate the present value of the interest payments.

c. Calculate the present value of the principal.

d. Add b and c together to get the selling price of the bond